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Munis Are Unchanged
In Mostly Quiet Trading

NEW YORK -- The municipal bond market was unchanged in light trading late Friday.

The tone was cautious ahead of the Federal Open Market Committee meeting Tuesday, traders said.

On the plus side, retail continues to show an interest in municipal bonds due to higher yields, traders said.

Sizable new issues in next week's primary market, such as $420 million McCormick Place Project revenue bonds from the Metropolitan Pier & Exposition Authority, Chicago, should help give the market direction.

One trader said he'd be watching the reception to those bonds because they are general-market paper, and there's "nothing real special about them."

These bonds "will give you an idea of where the appetite is for general-market paper," he said.

Elsewhere, the September municipal futures contract closed up 4/32 at 113-21 while the nearby Treasury contract was up 5/32 to 115-04.